A new report has revealed that Huawei is increasing its efforts to become more self sufficient. While the US sanctions had cut off its chip supply from TSMC in the past, the company is now apparently seeking to set up its first chip production factory in China to offset the sanctions.
According to a DigiTimes report (Via AsiaTimes), the Chinese tech giant is planning on building its first wafer fabrication manufacturing company in Wuhan, Hubei Province. This new ‘HiSilicon Factory’ is expected to begin the production in stages from next year. Furthermore, the report claimed that the factory will be used to produce optical communication chips and modules to gain self sufficiency and to manufacture microcircuit designs as well.
For those unaware, HiSilicon is Huawei’s chip designing subsidiary and is a fabless chip maker. In other words, while it has the capability to design advanced chips it used to contract TSMC for chip production. As per sources close to the matter, Huawei is set to invest 1.9 billion Yuan (roughly 278 billion US Dollars) in the Wuhan HiSilicon chip factory project, which will have it develop its own chipsets for smartphones and other IoT (internet of things) devices as well.
With the various US sanctions that have crippled its operations, Huawei and even China has been placing an emphasis on accelerating the development of domestic fabrication plants to localize the supply chain for its local tech firms. This would even have it reduce its reliance on foreign chipmakers as well. Although, keep in mind that this is just an unconfirmed report at the moment, so take it with a pinch of salt for now and stay tuned for more updates regarding this matter.
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